Ottawa has begun reshaping its defence procurement system in an effort to speed up contracting, channel more work to domestic firms and turn federal spending into a stronger industrial policy tool.
The changes, unveiled at CANSEC on 27 May by Prime Minister Mark Carney, are already in force. They come as ministers have been under pressure to make procurement more agile, after parliamentary discussions last year stressed that Canada needs a faster and more flexible system in a m...
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ore volatile security environment. Defence officials have also been trying to align buying power with the broader ambitions set out in the 2024 defence policy update, which called for greater capability in areas ranging from Arctic operations to surveillance and missile defence.
At the centre of the overhaul is a revised Industrial and Technological Benefits policy. Foreign companies that win Canadian defence contracts will face stronger pressure to use Canadian suppliers and make investments in domestic supply chains. Ottawa has also introduced a 90-day service standard for approvals, a move aimed particularly at giving smaller firms more certainty. Two new crediting tools are meant to reward investment in Canada more directly: one covers major contributions such as new facilities, research and development or intellectual property transfers; the other effectively gives full credit to Canadian companies that carry out at least 70 per cent of the work at home.
The government is also moving away from treating each deal as a stand-alone transaction. Under the new Strategic Partnership Framework, selected companies will be tied more closely to long-term defence priorities, with expectations that they invest in research, deepen domestic supply chains and sustain a Canadian workforce. In return, ministers are promising more predictable approvals, anchor-customer support and help in reaching export markets.
For smaller businesses, one of the more practical changes is the launch of a Defence Concierge Service at Innovation, Science and Economic Development Canada. The service is intended to help firms, especially SMEs, navigate a system that has often been criticised for being fragmented and hard to enter.
Industry will also get a formal role through the new Defence Advisory Forum. A call for expressions of interest opens on 1 June, with the inaugural meeting expected in September 2026. The forum will draw on executives, regional and national associations, Indigenous representatives and voices from Canada’s sovereign capability sectors. It will be co-chaired by the defence, industry and procurement ministers.
The broader political backdrop matters. Procurement reform has been a recurring issue in Ottawa, sharpened by scrutiny of contracting practices and by a wider push to strengthen integrity controls in federal purchasing. The new measures suggest the government wants not only to tighten oversight, but also to make defence buying a more deliberate instrument of industrial development.
The real test now is whether these changes deliver faster decisions, stronger Canadian participation and a procurement system that can keep pace with the demands of modern defence planning.
Source: Noah Wire Services
